As Passed by the Senate 1
123rd General Assembly 4
Regular Session H. B. No. 338 5
1999-2000 6
REPRESENTATIVES BRITTON-ALLEN-BEATTY-BOYD-DePIERO-FORD- 8
HARTLEY-HARTNETT-JONES-R. MILLER-OLMAN-PADGETT-PATTON-SCHULER- 9
SULLIVAN-TERWILLEGER-D. MILLER-WILLIAMS-DISTEL-KRUPINSKI-VERICH- 10
ROBERTS-BARRETT-SYKES-SMITH-SENATORS MALLORY-ESPY-FINGERHUT- 11
PRENTISS-BRADY-MUMPER-WATTS-SPADA-HAGAN-NEIN-McLIN-SCHAFRATH- 12
GARDNER-HERINGTON-ARMBRUSTER 13
_________________________________________________________________ 14
A B I L L
To amend section 4763.05 of the Revised Code to 16
require real estate appraisers initially to 17
complete a course on federal, state, and 18
municipal fair housing law in order to be 19
eligible for certification or licensure as a real 20
estate appraiser. 21
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 23
Section 1. That section 4763.05 of the Revised Code be 25
amended to read as follows: 26
Sec. 4763.05. (A)(1) A person shall make application for 35
an initial state-certified general real estate appraiser 36
certificate, an initial state-certified residential real estate 38
appraiser certificate, an initial state-licensed residential real 39
estate appraiser license, or an initial state-registered real 40
estate appraiser assistant registration in writing to the 41
superintendent of real estate on a form the superintendent 43
prescribes. The application shall include the address of the 44
applicant's principal place of business and all other addresses 45
at which the applicant currently engages in the business of 47
preparing real estate appraisals and the address of the 48
applicant's current residence. The superintendent shall retain 49
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the applicant's current residence address in a separate record 50
which shall not constitute a public record for purposes of
section 149.03 of the Revised Code. The application shall 51
indicate whether the applicant seeks certification as a general 52
real estate appraiser or as a residential real estate appraiser, 53
licensure as a residential real estate appraiser, or registration 55
as a real estate appraiser assistant and be accompanied by the 56
prescribed examination and certification, registration, or 57
licensure fees set forth in section 4763.09 of the Revised Code. 59
The application also shall include a pledge, signed by the 60
applicant, that the applicant will comply with the standards set 62
forth in this chapter and a statement that the applicant
understands the types of misconduct for which disciplinary 64
proceedings may be initiated against the applicant pursuant to 65
this chapter.
(2) For purposes of providing funding for the real estate 67
appraiser recovery fund established by section 4763.16 of the 68
Revised Code, the real estate appraiser board shall levy an 69
assessment against each person issued an initial certificate, 70
registration, or license and against current licensees, 72
registrants, and certificate holders, as required by board rule. 74
The assessment is in addition to the application and examination 75
fees for initial applicants required by division (A)(1) of this 76
section and the renewal fees required for current certificate 77
holders, registrants, and licensees. The superintendent shall 79
deposit the assessment into the state treasury to the credit of 80
the real estate appraiser recovery fund. The assessment for 81
initial certificate holders, registrants, and licensees shall be 83
paid prior to the issuance of a certificate, registration, or 84
license, and for current certificate holders, registrants, and 86
licensees, at the time of renewal. 87
(B) An applicant for an initial general real estate 89
appraiser certificate shall possess at least thirty months of 90
experience in real estate appraisal, or any equivalent experience 91
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the board prescribes. An applicant for a residential real estate 93
appraiser certificate or residential real estate appraiser 94
license shall possess at least two years OF experience in real 95
estate appraisal, or any equivalent experience the board 96
prescribes. In addition to any other information required by the 97
board, the applicant shall furnish, under oath, a detailed 98
listing of the appraisal reports or file memoranda for each year 99
for which experience is claimed and, upon request of the 100
superintendent or the board, shall make available for examination 101
a sample of the appraisal reports prepared by the applicant in 102
the course of the applicant's practice. 103
(C)(1) Except as provided in division (C)(2) of this 105
section, an applicant for an initial certificate, registration, 106
or license shall be at least eighteen years of age, honest, 108
truthful, and of good reputation and shall present satisfactory 109
evidence to the superintendent of the following, as appropriate: 111
(a) If the applicant is seeking a state-certified general 113
real estate appraiser certificate, that the applicant has 114
successfully completed at least one hundred sixty-five classroom 116
hours of courses in subjects related to real estate appraisal, 118
INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 119
STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 121
recognized appraisal organization, an institution of higher 122
education, a proprietary school registered by the state board of 123
proprietary school registration, a state or federal commission or 124
agency, or any other organization that represents the interests 125
of financial institutions or real estate brokers, appraisers, or 126
agents and that provides appraisal education, plus fifteen 127
classroom hours related to standards of professional practice and 128
the provisions of this chapter;
(b) If the applicant is seeking a state-certified 130
residential real estate appraiser certificate, that the applicant 131
has successfully completed at least one hundred five classroom 133
hours of courses in subjects related to real estate appraisal, 134
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INCLUDING AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, 135
STATE, AND MUNICIPAL FAIR HOUSING LAW, presented by a nationally 136
recognized appraisal organization, an institution of higher 137
education, a proprietary school registered by the state board of
proprietary school registration, or any other organization that 138
represents the interests of financial institutions or real estate 139
brokers, appraisers, or agents and that provides appraisal 140
education, plus fifteen classroom hours related to standards of 141
professional practice and the provisions of this chapter; 142
(c) If the applicant is seeking a state-licensed 144
residential real estate appraiser license, that the applicant has 145
successfully completed at least seventy-five classroom hours of 147
courses in subjects related to real estate appraisal, INCLUDING 148
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 150
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 152
appraisal organization, an institution of higher education, a 153
proprietary school registered by the state board of proprietary 154
school registration, a state or federal commission or agency, or 155
any other organization that represents the interests of financial 156
institutions or real estate brokers, appraisers, or agents and 157
that provides appraisal education, plus fifteen classroom hours 158
related to standards of professional practice and the provisions 159
of this chapter;
(d) If the applicant is seeking a state-registered real 161
estate appraiser assistant registration, that the applicant has 162
successfully completed at least seventy-five classroom hours of 164
courses in subjects related to real estate appraisal, INCLUDING 165
AT LEAST ONE COURSE DEVOTED EXCLUSIVELY TO FEDERAL, STATE, AND 166
MUNICIPAL FAIR HOUSING LAW, presented by a nationally recognized 167
appraisal organization, an institution of higher education, a 168
proprietary school registered by the state board of proprietary 169
school registration, or any other organization that represents 170
the interests of financial institutions or real estate brokers, 171
appraisers, or agents, and that provides appraisal education that 172
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included at least fifteen classroom hours of instruction related 173
to standards of professional practice and the requirements of 174
this chapter and the rules adopted under this chapter. 175
(2) Each person who files an application for an initial 177
certificate or license within one year of the date established by 178
the board as the first date on which applications will be 179
accepted under this section, which date shall be no later than 180
September 1, 1990, and who, at the time of filing that 181
application, does not satisfy the educational requirements for 182
the certification or licensure sought of either division 183
(C)(1)(a) or (b) of this section is exempt from those educational 184
requirements for the term of the initial certification or 185
licensure. In applying for a renewal certificate or license 186
pursuant to section 4763.06 of the Revised Code, a certificate 187
holder or licensee who was exempted from the educational 188
requirements of division (C)(1)(a) or (b) of this section when 189
applying for the initial certificate or license shall present 191
satisfactory evidence to the superintendent that the certificate 192
holder or licensee has completed the educational requirements for 194
the certification or licensure to be renewed of one of those 195
divisions before the renewal certificate or license may be 196
issued.
(D) An applicant for an initial general real estate 198
appraiser or residential real estate appraiser certificate or 199
residential real estate appraiser license shall take and 201
successfully complete a written examination in order to qualify 202
for the certificate or license. The examination shall require 203
the applicant to demonstrate all of the following:
(1) Appropriate knowledge of technical terms commonly used 205
in or related to real estate appraising, appraisal report 206
writing, and the economic concepts applicable to real estate; 207
(2) Understanding of the principles of land economics, 209
real estate appraisal processes, and problems likely to be 210
encountered in gathering, interpreting, and processing of data in 211
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carrying out appraisal disciplines; 212
(3) Understanding of the standards for the development and 214
communication of real estate appraisals as provided in this 215
chapter and the rules adopted thereunder; 216
(4) Knowledge of theories of depreciation, cost 218
estimating, methods of capitalization, direct sales comparison, 219
and the mathematics of real estate appraisal that are appropriate 220
for the certification or licensure for which the applicant has 221
applied; 222
(5) Knowledge of other principles and procedures as 224
appropriate for the certification or license; 225
(6) Basic understanding of real estate law; 227
(7) Understanding of the types of misconduct for which 229
disciplinary proceedings may be initiated against a certificate 230
holder and licensee. 231
(E)(1) A nonresident, natural person of this state who has 234
complied with this section may obtain a certificate,
registration, or license. The board shall adopt rules relating 236
to the certification, registration, and licensure of a 237
nonresident applicant whose state of residence the board 239
determines to have certification, registration, or licensure 241
requirements that are substantially similar to those set forth in 242
this chapter and the rules adopted thereunder.
(2) A nonresident appraiser may apply for, and the board 244
may issue, a temporary certificate or license if the board 245
determines that the state in which the nonresident appraiser is 246
licensed or certified has licensing or certification requirements 247
that are substantially similar to the certification or licensure 248
requirements set forth in this chapter and the rules adopted 249
thereunder. 250
The board shall adopt rules relating to the temporary 252
certification and licensure of nonresident appraisers. Each 253
temporary certificate and license issued by the board shall 254
identify the location of the real estate property to be appraised 255
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and shall not authorize appraisal of more than one real estate 256
property located in this state. The board shall not issue more 257
than two temporary certificates or licenses in any one calendar 258
year to any one applicant. 259
(3) In addition to any other information required to be 261
submitted with the nonresident applicant's or appraiser's 262
application for a certificate, registration, license, or 264
temporary certificate or license, each nonresident applicant or 265
appraiser shall submit a statement consenting to the service of 266
process upon the nonresident applicant or appraiser by means of 268
delivering that process to the secretary of state if, in an 269
action against the applicant, certificate holder, registrant, or 270
licensee arising from the applicant's, certificate holder's, 272
registrant's, or licensee's activities as a certificate holder, 274
registrant, or licensee, the plaintiff, in the exercise of due 275
diligence, cannot effect personal service upon the applicant, 276
certificate holder, registrant, or licensee. 277
(F) The superintendent shall not issue a certificate, 279
registration, temporary certificate or license, or license to a 280
corporation, partnership, or association. This prohibition shall 281
not be construed to prevent a certificate holder or licensee from 282
signing an appraisal report on behalf of a corporation, 283
partnership, or association. 284
(G) Every person licensed, registered, or certified under 286
this chapter shall notify the superintendent, on a form provided 288
by the superintendent, of a change in the address of the 289
licensee's, registrant's, or certificate holder's principal place 290
of business or residence within thirty days of the change. If a 291
licensee's, registrant's, or certificate holder's license, 293
registration, or certificate is revoked or not renewed, the 295
licensee, registrant, or certificate holder immediately shall 297
return the annual and any renewal certificate, registration, or 299
license to the superintendent.
(H) The superintendent shall not issue a certificate, 301
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registration, temporary certificate or license, or license to any 302
person who does not meet applicable minimum criteria for state 303
certification, registration, or licensure prescribed by federal 304
law or rule.
Section 2. That existing section 4763.05 of the Revised 306
Code is hereby repealed. 307